The present invention is directed to an illuminated rotatable toy of the type generally referred to as a "yo-yo". Other rotary toys have incorporated illumination features in them often including switches which are activated by centrifugal force to illuminate the toy. See, for example, U.S. Pat. Nos. 3,191,344; 3,745,697; 4,327,518 and 4,867,727. Another approach has been used to provide a stroboscopic light source on the rim of a "Frisbee" as illustrated in U.S. Pat. No. 3,812,614. None of these approaches provide the novel effect of the present invention.